Is Apple a Stock to Own in 2014? Two Fools Debate

With the year rapidly coming to an end, investors may be thinking about which stocks they want in their portfolios in 2014. In this segment, Two Fools Debate, Fool editor Jamal Carnette and contributor Sam Mattera discuss whether investors should own Apple (NASDAQ: AAPL  ) in 2014.

Sam expects another year of underperformance. He sees Google's (NASDAQ: GOOGL  ) Android encroaching on Apple's territory, while telecom giants in the US, including AT&T continue to move away from smartphone subsidies. More competition from Android-powered tablets and smartphones could lead to fewer Apple products being sold, while Apple's reliance on carrier subsidies could weigh on iPhone sales should they go away.

In contrast, Jamal is hopeful that Apple will outperform in the coming year. He expects that Apple's recent deal with China Mobile will lead to millions more iPhones being sold in China, a large market of increasing importance. At the same time, new, forthcoming Apple products like the long-rumored smart watch and smart TV could drum up investor interest -- much like the iPad did in 2010 -- and lead to earnings growth in 2014.

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Comments from our Foolish Readers

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  • Report this Comment On December 28, 2013, at 6:40 PM, WineHouse wrote:

    I don't see any decrease in smartphone "subsidies" in the coming year. That's total nonsense because there's really no such thing as a carrier subsidy. If anything, such "subsidies" have been more furtively incorporated into smartphone deals this year than ever before. The fact is that there is no such thing as carrier "subsidies." There are only carrier "plans" that allow the subscriber / purchaser to spread the costs of the phone over a longer period of time. The newer "deals" (e.g., the "no contract!" deals) are stealthy for those who don't read the fine print -- no contract, true, but a monthly payment for the phone and a "penalty" if you stop using the carrier. All of that adds up to -- well, if you want to continue to think that the carriers are subsidizing the phones, then it adds up to compensation for the subsidy, and the compensation comes from the pockets of the phone user / purchaser. To my mind (and abacus), that ain't no subsidy. The carriers aren't eating the costs of the phones.

  • Report this Comment On December 28, 2013, at 10:08 PM, larryw101 wrote:

    You start the interview right by saying the two of you are fools. That you are !

    Apple has never been more poised than it is right now to have strong growth in 2014 coming from record sales of iPads, to increased sales of iPhones due to China Mobile and due to new products launches. Recent reports stated that iOS is overtaking android on new phone subscriptions and iPads sales were 4 times as much compared to all other tablets.

    Every time you guys come on it looks and reads very amateurish. At least Mattera had his hair combed today. He looks and speaks like a kid out of high school.

    Sam Mattera in particular has NEVER been right yet on any Apple prediction. I defy anyone to prove me wrong. He bashes Apple weekly.

    In any case, this is just another example of worthless and slanted journalism.

    When is Motley Fool going to wise up and find some credible writers to write for them? This here is a joke!

  • Report this Comment On December 29, 2013, at 1:38 AM, djtetsu wrote:

    Good to hear the counter arguments, otherwise you are blindly following others on this website.

    I'm just under the impression that the product refreshes this last qtr was off the hizzzle, and it was an APPL XMAS.

    China Mobile, Docomo, we all know the long list of +'s...

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